Donald Trump and the US government are implementing a three-pillar strategy to establish American dominance in digital assets, centered on Bitcoin reserves, stablecoins, and perpetual futures markets. Trump declared in May that "the United States is the capital of digital assets," marking the achievement of a goal he set at his January 2025 inauguration to make America the digital asset capital. The strategy involves accumulating Bitcoin as a strategic reserve (US entities now hold approximately 2.98 million BTC, 15% of circulating supply), leveraging stablecoin issuers' demand for US Treasuries to offset declining foreign purchases, and bringing offshore derivatives trading under domestic regulatory frameworks. This policy shift stems from the administration's objective to absorb global market share in digital asset sectors and maintain dollar hegemony through new demand channels for government debt. The approach represents a sharp reversal from the Biden administration's enforcement-focused stance, with Trump signing the GENIUS Act in July to regulate dollar-backed stablecoins and the CFTC approving perpetual futures products for US exchanges.
US Government and Corporations Accumulate 2.98 Million Bitcoin as Strategic Reserve
The US government, asset managers, and publicly traded companies collectively hold approximately 2.98 million Bitcoin, representing 15% of the cryptocurrency's circulating supply. The federal government holds 329,693 BTC, including assets seized in the Silk Road dark web marketplace case and from the Cambodian Prince Group criminal organization. Trump signed an executive order in March directing the Treasury Department to retain government-held Bitcoin rather than liquidate it and to develop strategies for additional acquisitions.
Congressional legislation followed this policy direction. The Senate introduced the BICOIN Act in March, proposing the purchase of 1 million Bitcoin to be held as a reserve asset comparable to gold. The House introduced the ARMA Act in May, which includes discretionary authority for Bitcoin purchases rather than mandatory annual acquisition requirements.
Eleven US asset managers hold approximately 1.76 million Bitcoin through spot exchange-traded funds, according to The Block. Among the top 100 publicly traded companies holding Bitcoin globally, 42 are US-based firms controlling a combined 892,557 BTC, per BitcoinTreasuries.net. This group includes Strategy, the world's largest corporate Bitcoin holder, and SpaceX.
Stablecoin Issuers Hold $209 Billion in US Treasuries Under New Federal Framework
Stablecoins have emerged as a significant source of demand for US government debt as traditional foreign buyers reduce holdings. China's Treasury holdings declined from approximately $1.317 trillion in 2013 (ranked first globally) to approximately $652 billion as of March 2026 (ranked third), representing a roughly 50% reduction. Dollar-pegged stablecoins account for 99% of the stablecoin market, with issuers holding reserves primarily in short-term US Treasuries to generate yield.
Tether, issuer of the largest stablecoin USDT, held approximately $141 billion in US Treasuries as of late last year. Circle, issuer of the second-largest stablecoin USDC, held approximately $68 billion. Combined, the two companies' Treasury holdings would rank them among the top 10 sovereign holders globally. Treasury Secretary Scott Bessent stated in June that "if the stablecoin ecosystem thrives, it will create private sector demand for US Treasuries, and this new demand can help lower the government's borrowing costs and curb national debt."
Congress moved rapidly to formalize stablecoin regulation through the GENIUS Act, which mandates reserve asset requirements, establishes a dual federal-state licensing system, subjects non-bank issuers to federal oversight, and prohibits interest payments on stablecoins. The bill passed the Senate in June and was signed into law by Trump in July. At the signing ceremony, Trump stated that "the GENIUS Act will create regulations to realize the potential of dollar stablecoins."
CFTC Approves Perpetual Futures Trading for US Platforms Amid Legal Challenges
The Trump administration is incorporating perpetual futures and prediction markets into the Commodity Futures Trading Commission's regulatory framework, reversing the Biden administration's enforcement approach. Perpetual futures are derivatives contracts with no expiration date that trade 24 hours daily, distinguishing them from traditional futures. The CFTC approved perpetual futures products for US-based platforms including Kalshi, Coinbase, and Kraken.
Prediction markets, which allow participants to wager digital assets or money on outcomes of political events and other occurrences, are being reclassified from "event contracts" into the commodity regulatory structure. The CFTC is developing rules that would prohibit only markets on topics contrary to public interest, such as war or terrorism, which raise ethical concerns or conflicts of interest.
The Chicago Mercantile Exchange filed a lawsuit in federal court on May 18 challenging the CFTC's approval of perpetual futures, calling the decision "arbitrary" and citing concerns about market encroachment. The CFTC is also engaged in litigation with several state governments that have pursued gambling regulations against prediction market platforms.
Trump stated in May that "anti-digital asset forces like Gary Gensler [former SEC chair] drove perpetual futures overseas, but I rescued them." CFTC Chairman Michael Selig stated that "regulations related to perpetual futures limit excessive leverage and volatility to reduce risk and prevent [capital] outflows to overseas markets."
FAQ
What did Trump declare about US digital asset leadership in May?
Trump declared in May that "the United States is the capital of digital assets," stating this represented the fulfillment of his January 2025 inauguration pledge to make America the digital asset capital. This declaration followed implementation of policies directing federal agencies to retain seized Bitcoin, legislative proposals for strategic Bitcoin reserves, enactment of stablecoin regulation through the GENIUS Act, and CFTC approval of perpetual futures products for domestic exchanges.
How much Bitcoin do US government and corporate entities hold?
US government, asset management firms, and publicly traded companies collectively hold approximately 2.98 million Bitcoin, representing 15% of the cryptocurrency's circulating supply. The federal government holds 329,693 BTC from asset seizures. Eleven asset managers control approximately 1.76 million BTC through spot ETFs. Forty-two US-based publicly traded companies hold a combined 892,557 BTC, including Strategy and SpaceX among the largest corporate holders.
Why are stablecoins important to US Treasury debt demand?
Stablecoin issuers hold reserves primarily in US Treasuries to generate yield, creating a new source of demand as traditional foreign buyers reduce holdings. Tether holds approximately $141 billion in Treasuries and Circle holds approximately $68 billion. Treasury Secretary Scott Bessent stated in June that stablecoin ecosystem growth creates private sector Treasury demand that can lower government borrowing costs and help curb national debt. Congress enacted the GENIUS Act in July to establish federal regulation of stablecoin issuers and mandate reserve requirements.
